I-Tech R&D Limited Partnership - Page 6




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          4.   Hal Robotics, Ltd. (Hal Robotics);12 and                               
          5.   Cycon, Ltd. (Cycon)13                                                  
               The four R&D companies previously funded by ATA are:  Efrat,           
          AiTech, Hal Robotics, and Cycon.14  The ATA funds were derived              
          from capital contributions by ATA’s partners and loans from the             
          Office of Chief Scientist of the Ministry of Industry and Trade             
          of the State of Israel (Chief Scientist).  Cycon was the only R&D           
          company for which ATA did not receive a Chief Scientist loan.               
               The original contract between ATA and Efrat (ATA R&D                   
          agreement) contained a provision stating that Efrat was                     
          exclusively entitled to manage and control the research and                 
          development project.15  The ATA R&D agreement also provided that            
          Efrat had the power to do whatever was necessary to exploit the             
          research and development project.  The original ATA R&D                     
          agreements with Efrat, AiTech, Hal Robotics, and Cycon were                 
          amended to substitute I-Tech for ATA.                                       


               12Hal Robotics was developing an “automatic workshop”--a               
          computer program that would enable an entire product to be                  
          produced by robots.                                                         
               13Cycon was developing a computer and the necessary software           
          to control a machine that would mill metal parts automatically.             
               14As of Sept. 1, 1984, ATA provided the following amounts to           
          the R&D companies to fund R&D expenses: (1) Eftrat, $1,725,000;             
          (2) AiTech, $310,000; (3) Hal Robotics, $490,000; and (4) Cycon,            
          $100,000.  Cycon subsequently repaid the $100,000 to ATA.                   
               15Petitioner did not provide copies of the original                    
          agreements between ATA and the other three R&D companies (AiTech,           
          Hal Robotics, and Cycon).                                                   




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